Businesses are in no rush to connect their distributed generation to Ukraine’s power system due to debts in the market.

Ukrainian companies have built hundreds of megawatts of distributed generation capacity for their own needs but are in no hurry to connect these generation capacities to the power system.

The energy market’s situation is as follows: Ukrainian energy producers who sell electricity on the market can wait a year and a half to receive payment. This situation does not entice those who have already built their generation infrastructure to enter the market, experts say.

In Ukraine a current trend toward building generation for energy self-sufficiency by commercial electricity consumers is being observed. Without connecting to existing grids, businesses put over 500 MW into operation last year.

Proactive measures are needed – a systemic policy that could balance the market and gradually relieve it of debt. Experts comment that this is a key prerequisite for the emergence of new generation, which is crucial when Russia regularly destroys the energy infrastructure.

The level of state settlements with electricity producers through the green tariff at the end of 2024 was 79.6%, compared to 95.3% in 2023 and 62.2% in 2022.